Lithia Motors Inc (LAD)
Number of days of payables
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Payables turnover | 101.85 | 101.62 | 90.00 | 78.58 | 97.22 | |
Number of days of payables | days | 3.58 | 3.59 | 4.06 | 4.64 | 3.75 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 101.85
= 3.58
Lithia Motors, Inc.'s number of days of payables has shown a decreasing trend over the past five years, indicating a more efficient management of its accounts payable. As of December 31, 2023, the company's payables are being settled in approximately 4.07 days on average, which is a slight decrease from 4.09 days in the previous year. This suggests the company is able to pay its suppliers faster, potentially benefiting from early payment discounts or maintaining good relationships with vendors. Overall, the decreasing trend in the number of days of payables reflects positively on Lithia Motors' liquidity and working capital management.
Peer comparison
Dec 31, 2023